Entrust shares tumble more than 50 percent

Shares of Entrust Technologies today plunged more than 50
percent after the security software maker warned that second-quarter earnings
will be much lower than the Street's expectations.

Shares closed at $36.63, a decline of $40.50, or 52.5 percent, on volume of almost 19 million shares.

Plano, Texas-based Entrust expects second-quarter earnings of 2 cents a
share. Analysts polled by First Call projected the company to earn 8 cents
a share. The company is slated to report second-quarter results at the
close of market July 18.

The profit warning is related to a delay in closing sales of Public Key Infrastructure (PKI) systems and
does not mean Entrust is losing business, the company said in a statement.
Entrust makes software to secure online transactions using PKI technology. PKI systems issue and manage digital
certificates, which serve as electronic IDs online.

The company competes in the growing market for Web security software
against rivals VeriSign and GTE's CyberTrust. Entrust faces heightened
competition from a growing number of players as more businesses conduct
increasingly complicated transactions via the Web.

Check Point Software slipped $10.06, or 4.6 percent, to close at $210.56. VeriSign fell $16.88,
or 9.2 percent, to $166.50. Axent Technologies dipped $1.88, or 7.7
percent, to $22.63. And ISS Group slid $2.94, or 2.9 percent, to $97.

Shares of Computer Associates dropped 42 percent after the
company warned that first-quarter earnings will miss analysts' estimates. The
company expects to earn 11 cents to 16 cents in its first quarter, which is
far below Street estimates of 55 cents a share.

Meanwhile, BMC Software shares slid 40 percent after the business
software maker said first-quarter earnings would fall short of analysts'
expectations because of weakness in its mainframe business. BMC said it
expects to report first-quarter earnings of 18 cents to 21 cents a
share. Analysts polled by First Call projected the company at 46 cents
per share for the quarter.

Entrust said revenues for the second quarter, which ended June 30, will be up
"substantially" from the year-ago figure of $19.8 million and "slightly above" last quarter's revenues of $29.1 million.

"I remain optimistic about Entrust Technologies prospects for the remainder
of 2000 and beyond," Entrust chief executive John Ryan said in a statement.